Selena Gomez’s Wondermind Faces Financial Hurdles: A Deep Dive into the Star’s Business Ventures
Selena Gomez, the multi-talented actress, singer, and entrepreneur, has seen her mental health startup, Wondermind, face recent financial challenges. Reports have surfaced regarding missed payments to staff and vendors, sparking questions about the financial stability of the company and Gomez's involvement.
Forbes initially reported that Wondermind, co-founded by Gomez and her mother, Mandy Teefey, encountered difficulties in paying its employees and freelancers. The report detailed how Teefey, Wondermind's CEO, allegedly took out a loan against her own home to cover outstanding debts, which the company has since stated they have rectified. This news triggered a wave of online discussion regarding the 32 year-old Gomez's actual net worth and her capacity to support the startup.
While some sources estimated Gomez's net worth to be over $1 billion, largely attributed to her successful makeup line, Rare Beauty, Forbes estimates it to be closer to $700 million. This figure places her among the wealthiest self-made women entrepreneurs, but the breakdown of her assets reveals limitations on the funds she can directly allocate to Wondermind.
Rare Beauty, launched in 2020, is undeniably Gomez's most significant asset. Selling exclusively at Sephora and via its website, the brand has become popular, fuelled in part by its "Soft Pinch" blush. It reported $367 million in revenue in 2023 and is valued at approximately $1.3 billion. According to investment banking advisory firm Lincoln International, "the brand can stand on its own two feet without her at the helm, I think is what helps create the staying power.”
Responding to the initial Forbes report, a source speaking to People Magazine clarified that Gomez "immediately invested more money" into Wondermind once she learned of the financial setbacks. They emphasized that Gomez has consistently supported the company and her mother's vision for mental health awareness. Additionally adding that Mandy Teefey took the lead with a personal loan to invest in the future of the company.
Wondermind, launched in 2021, aims to provide a safe online space for discussing mental health. The platform offers podcasts, newsletters, and essays on mental well-being. Despite the reported financial hiccups, a Wondermind spokesperson stated that the company is transitioning into a new chapter, committed to continuing its work in mental fitness.
While Gomez's direct involvement in Wondermind's day-to-day operations has been questioned, she remains a key figure in promoting its mission. Some sources state that she surprised attendees at Rare Beauty’s Mental Health Summit in Los Angeles on May 2. Besides, she has continued her acting and producing work on series like "Only Murders in the Building", and roles in various films, showing that Gomez is continuing to balance her different roles.
The situation at Wondermind raises interesting questions about celebrity-backed startups and the challenges of balancing business ventures with public image. As Wondermind navigates its "growing pains," it remains to be seen how Gomez's influence and financial support will shape its future. How do you see celebrity involvement shaping the landscape of mental health startups? Share your thoughts in the comments below!